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The Senate on Monday passed a resolution seeking withdrawal of high denomination Rs5,000 currency notes from circulation in order to curb the flow of black money.
Senator Usman Saif Ullah Khan of PML tabled the resolution that was endorsed by the majority of law makers in the Upper House.
The resolution said that the withdrawal of Rs5,000 notes will encourage the use of bank accounts and reduce the size of the undocumented economy.
It said the withdrawal of the currency notes should take place within three to five years in order to purge markets of the notes.
Law Minister Zahid Hamid, however, said that the withdrawal of the notes will create crises in the market and the people will resort to foreign currencies in absence of Rs5,000 notes.
He said that currently 3.4 trillion notes are in circulation in country of which 1.02 trillion notes are of Rs5,000 denominations.
The move appears to be inspired by India's recent demonetisation drive, in which notes of 500 and 1,000 Indian rupees were pulled from circulation in a dramatic blitz on tax evasion.
Read more
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On DawnNews
Comments (80) Closed
Dec 19, 2016 05:31pm
Really intelligent of the pak govt. to make this public. *Claps*
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Dec 19, 2016 05:33pm
Great move , will help Pakistan.
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Dec 19, 2016 05:36pm
All illeterate people in our assemblies and senate. Can't bring up any subject on their own rather than getting tips from media or other countries. Wasting tax payer money.
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Dec 19, 2016 05:38pm
Great so now all black money hoarders will find out ways ...what a way to make it public ...CLAPS
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Dec 19, 2016 05:47pm
First of all, it should not be announced, secondly, be better prepared to tackle aftermath so public hardship is lessened, given first criteria is not met, it is not useful
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Dec 19, 2016 05:45pm
Bunch of illiterate incompetents sitting in the assembly, all are there to make money through illegal means.
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Dec 19, 2016 05:50pm
Don't blindly follow suit your neighbours, first of all free yourself from this web of corruption from within. Useless moves without any strategy to achieve targets.
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Dec 19, 2016 05:50pm
Black sheep have hundreds of thousands of ways to hide black money. Do first things first...get rid of corruption by getting rid of corrupt leaders in all the institutions who are spreading like cancer everywhere.
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Dec 19, 2016 05:52pm
Cause all the black money is in US $,
Senators you guys Are like a bunch of incompetents following ur neighbors " blindly "
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Dec 19, 2016 06:01pm
India first came out with Voluntary income disclosure under which around one lac crores was declared and tax collected. Demonitisation was subsequent to that.
Without giving one chance and without surprise element this will be difficult to implement.
But if this is coupled with Voluntary Disclosure simultaneously then it will be much effective and a superior one.
Give a chance to the person to show his hidden wealth while keeping a sword dangling over his head. He will fall in line obediently
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Dec 19, 2016 05:59pm
Instead of doing improvising in copying, they made a huge mistake by publicizing it...
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Dec 19, 2016 06:03pm
3 to 5 years to implement means that politicians are giving all culprits time to get rid of this black money by then. Wh can't it be implemented much sooner than the proposed time scale. Furthermore, larger quantities which will be exchanged should be questioned as to their legality. A clever move by these corrupt politicians.
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Dec 19, 2016 06:01pm
It is not a question of big or small currency notes but the criminal mindset which shall resort to some other modes operand...
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Dec 19, 2016 06:02pm
TRUTH ON BLACK MONEY - Money is never black or white when we get the money for the work we do it is white, and it is black when you manipulate the matters to our advantage and get it , is Black and tainted, this is what the society thinks as we all know the biggest challenge after success and great wealth is shutting up about it so the people export to other nations to live in peace in their nations, The Politicians try to important black money to make it white and keep the poor guessing and they complete the term,
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Dec 19, 2016 06:05pm
Plain stuped. No idea what is the ultimate objective here. With making it public it does not have any purpose.
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Dec 19, 2016 06:04pm
pl. be careful.In India, situation is messed up and lower order people, who earn and live on daily basis are suffering.BJP is going to lose UP,Punjab and Goa election.
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Dec 19, 2016 06:05pm
Yeah and then issue Rs. 10,000 notes so the Senators and their colleagues in the other House and ministers can hold more black money. It's a big hardship for them keeping it in the smaller denomination. If you want to follow India follow all the way.
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Dec 19, 2016 06:06pm
Why do we have to copy India. Can't our parliamentarians be innovative and indigenous.
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Dec 19, 2016 06:11pm
@Justice
Many economist believe that entire currency should be ' purged' after every decade. The entire exercise
But I think if it is only 5000 then it will be instantaneously and within span of few months.
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Dec 19, 2016 06:09pm
Indian economy is in a state of turmoil after their cash ban. Can Pakistan afford that?
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Dec 19, 2016 06:14pm
@Ahmed bin Babar
Fully agree ! Black money is at very lesser extent held in currency form.
And to very very high level in gold , antiques, paintings, silver , diamonds and of course landed property !
So this is just a beginning ...currency form is a tip of the iceberg ! Best of Luck
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Dec 19, 2016 06:16pm
Black money is so much a part of our white economy, a tumor in the center of the brain - try to remove it and you kill the patient. good luck
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Dec 19, 2016 06:32pm
@Dr Husain, MD
Is there no limit on holding Foreign Currency in Pakistan ?
And is it not a criminal offence attracting sever punishment including imprisonment if one exceeds the limit ?
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Dec 19, 2016 06:37pm
@ALI KHAN who said it genius? The prediction of growth has just dropped from 7.6 to 7.1. I won't call it a turmoil.
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Dec 19, 2016 06:43pm
Also control the foreign currency specially dollar and pounds in open market.
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Dec 19, 2016 06:43pm
This why USD price in open market has shot up...people converting all their black money to usd
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Dec 19, 2016 06:46pm
Indian drive is seriously lopsided because, after withdrawing 500 and 1,000 denomination notes, India has introduced 2,000 denomination notes at the same time.
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Dec 19, 2016 06:48pm
@Nitin: Enough time is given of 3 to 5 years to the black money holders to change into Dollars and other foreign currencies and save the sweep.
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Dec 19, 2016 06:53pm
Make good preparation before withdrawing any note.The common people should not suffer.
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Dec 19, 2016 06:50pm
Here we go. IN the footsteps of Modi's failed attempt and debacle in the aftermath of announcing replacement of Bank Notes in India.
Just shows there is not a single intelligent life in this government, who could not what a mess India government has created and inconvenienced millions who are left standing in long lines all day long, to exchange the currency notes!
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Dec 19, 2016 07:08pm
Can withdrawal of currency notes curb corruption ? even a child will say no to this idea, what has gone wrong to our law makers?
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Dec 19, 2016 07:08pm
Surprise , Surprise !! We should also get rid of our Rs 5000 note right now ..
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Dec 19, 2016 07:08pm
Really great step. Pakistan is true democratic country they are going for demonetization after taking public into confidence by announcing in advance and giving enough time. Also great thing is that only one third (or even less) currency will go out of market, rest will be there for daily and special purpose. Let me inform the readers that it is sarcastic comment.
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Dec 19, 2016 07:08pm
It is called great step,
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Dec 19, 2016 07:15pm
@M.Saeed It is expected to be withdrawn. It was introduced to tide over initial cash crunch.
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Dec 19, 2016 07:22pm
This is good move by Pakistan.
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Dec 19, 2016 07:29pm
big joke. .moment u announce ..it is total scrap.
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Dec 19, 2016 07:44pm
All we are left with are mimickers.
Send them home. No planning, nothing original.
Yet another propaganda by PML- N.
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Dec 19, 2016 08:05pm
Pak Rs 5000 is less than US$50, the Senate resolution is foolish and will slow down the economy of Pakistan. Don't copy India the Indians felt a tremor by bad move of Modi,and now Modi is taking face saving actions,by extending time and raising bars.
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Dec 19, 2016 08:33pm
now watch the buying rates of Gold and USD increase...as people go all out to buy precious metal and foreign currencies now.
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Dec 19, 2016 08:43pm
The whole idea is to do this unannounced and quickly - after the banks have counted their cash around 8pm and submitted to central bank and before they open the next day so that nobody gets a chance to move currency bills...
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Dec 19, 2016 08:56pm
There should have been something original and not just doing what India did. Because India took this decision after Voluntary Disclosure of income scheme, after taking action against those having account abroad ,just prior to election in 5 states and in the wake of good monsoon.
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Dec 19, 2016 08:59pm
No matter what, Pakistan always looks up to India for any economic reforms. Proud to be an Indian.
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Dec 19, 2016 09:20pm
Unlike Modi, these people choose to make everything public. People would have already started exchanging Rs. 5000 note for other denominations. The sole purpose of effectiveness has been lost. But it's Pakistan and we will find someone to blame for it.
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Dec 19, 2016 09:34pm
Most stupid idea by the the senator.
It is politicians who the most corrupt and create underground economy. let us start there.
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Dec 19, 2016 09:39pm
Nothing to worry. Petty Bhai of corrupt mafia in government and bureaucracy would never allow that. Actually, soon Pakistan would have Rs10,000 note and Rs 100,000 notes. :)
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Dec 19, 2016 09:48pm
They are giving themselves 3 years to find another way; this should have been 3 months
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Dec 19, 2016 09:57pm
Yes nice giving 5 years and advance notice. Good way to curb black money.
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Dec 19, 2016 10:00pm
It's Quite astonishing how people become so naive, and they still believe that their government has any interest for their benefit. In Pakistan there is absolutely no interest of Government in it's Peoples well being Here is why they want that. So Banks become strong, so they can then lend these goons more money. That's the entire idea about it. I cannot expect a single sip of water from these Loney Tones Politicians, let alone a good gesture.
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Dec 19, 2016 10:04pm
The move needs to be surprising to reap benefits...It can't be announced days earlier
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Dec 19, 2016 10:11pm
Don't copy the neighbor as it will not work here. 70% of Indian black money is still in India whereas over 70% of Pakistan's black money has gone out of the country !!
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Dec 19, 2016 10:19pm
@Striker Right. All the rich with ill gotten money will exchange for smaller denominations while poor and middle class will be stuck. India did it by surprise.
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Dec 19, 2016 10:19pm
@Nitin It will not help as it is announced before the implementation.
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Dec 19, 2016 10:41pm
Very good idea.
Do it and Surprise as
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Dec 19, 2016 10:52pm
Its not about following India footstep. I guess it is different because it is not about hiding money in 5000 note in some safe like in India but it is daily rotation of Rs 5000 through corruption. Civil bureaucracy would like to keep Rs 5000.
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Dec 19, 2016 11:06pm
Ha ha! 5000 will be discontiued in Dec, 2017
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Dec 19, 2016 11:18pm
Please don't be foolish like india.
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Dec 19, 2016 11:22pm
How original. Might I remind everyone that this is 21st century. Technology is available to track money launderers and catch them. What is lacking is the will of the high and mighty who are themselves involved. So don't punish the common man and keep your original ideas (copied from India) to yourself.
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Dec 19, 2016 11:29pm
Great step. We should move to stop printing all PKR 5,000 and also 1,000 and 500 notes. Should be demobilized before start of 2020. Anyone who carries a PKR 500 note also has a mobile phone and can use electronic transfers. Let the economy and money be documented!
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Dec 19, 2016 11:48pm
Pakistan zindabad. This is the most innovative ,original idea from
Our leaders.
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Dec 20, 2016 12:02am
@wellwisher - BJP and Modi stand for the national interest and they have taken a bod step for the country without giving regard to their political future. However, common people of India will keep them in power, that's for sure
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Dec 20, 2016 12:12am
No firm date.Not immediate.Announcing unenforced policy in Public.Foolish
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Dec 20, 2016 12:21am
@Mahmood: Calm down bro. This is just to alert the black money holders to change it to gold. No action of that sort will be taken
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Dec 20, 2016 12:21am
Pakistan HAS to follow India. Amazing.
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Dec 20, 2016 01:19am
Looking at inflation ,the people will welcome Rs.10,000 note.
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Dec 20, 2016 02:45am
If Indians are folish, this will be one step beyond foolish.
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Dec 20, 2016 02:50am
@Striker it is intelligent the objective is not as in india where it was withdrawn and people were hit regardless of how the money had been earned . the idea is that if you have to pay someone a corer u do it through the bank as you need to carry too many 1000 rupee notes. that is the theory
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Dec 20, 2016 03:12am
There are about 1 trillion fake Rs5000 notes in circulation which are being printed in Kabul. People bring these notes into Pakistan and exchange with US dollars. It will be a good move but ultimately state will be the loser as these fake notes will have to eventually end up in the coffers of central bank.
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Dec 20, 2016 04:17am
It will be like politicians shooting their own feet because most of the black money belongs to them.
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Dec 20, 2016 04:30am
Legislative Assemblies of India and Pakistan are constituted on the British framed 1935 Constitution that they designed to rule over their colony. India is taking new and innovative steps to Indianise the constitution every now and then to make the federation strong. Demonetization , that Modi Govt. has taken is a disastrous step for the common Indians. Pakistani senators , who are basically from the elite class, know it well that the Demonetization of Modi has provided opportunity to the rich to amass money out of the system. Unfortunately, our ruling class never thinks of the welfare of the common people but only to gain selfish interests. They have played such games before as well to make enormous gain and Pakistan suffered a lot from their foolish designs.
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Dec 20, 2016 04:36am
How this will work is little strange to me. Not a good suggession. It will not work. It will disrupt a currently stable financial system.
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Dec 20, 2016 05:16am
@ALI KHAN It is not in turmoil. The corrupt politicians and those who are hoarding are sending people in line. Common person is happy. This will help in India from April/May. Watch and mark my words.
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Dec 20, 2016 05:27am
@Dr Siddique You are right, there are several other steps India did, opening account with zero balance for poor people, voluntary disclosure, tax at higher rate, Gold bond issuance, Benami property law, anti money laundering act, signed with countries to avoid double taxation. Pakistan has not followed any of these, declared three to five years, it is enough time for crooks to change to other means. Pakistan should have done secretly but that is not possible in that country. Now the Dubai will be asking the details of elites who are involved in black money menace. To show people this is done.
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Dec 20, 2016 05:44am
What is Rs. 5000 in its buying power? It sis just Rs. 500 of the yesteryears. Pakistani currency is not worth the paper it is printed on.
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Dec 20, 2016 06:03am
The government and parliament do not have half the brains to pass such legislation, someone from the outside is dictating it, just read between the lines.
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Dec 20, 2016 06:19am
Good step by pak. We Indians support this step. One can fallow and learn good from any . Nothing to feel about. Initially there will some problems. No pain no gain. We are prepared to face troubles for another few months. Now situation is slowly turning in to under control. Hope pak will also implement same. However it has to plan better.
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Dec 20, 2016 06:42am
Objective of this move: To curb the flow of black money.
Time period to implement it: 3 to 5 years.
The move will not meet its objective! For this move to work it required an element of surprise and a short implmentation period like no more than 3 months.
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Dec 20, 2016 10:40am
@Mahmood but millions support this mess why
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Dec 20, 2016 11:29am
Why the announcement before demonetization? Defeating the very purpose.
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Dec 20, 2016 12:31pm
So they made it public to benefit whom?
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